The automotive brake system market is projected to grow at a CAGR of 6.94% from 2016 to 2021, to reach a market size of USD 31.94 Billion by 2021. The key driver of this market is increasing vehicle production, whereas factors such as regulations on reducing stopping distances, safety rating certifications, New Car Assessment Program (NCAP), and mandates on implementation of electronic brake systems are driving the demand for disc brakes and associated electronic brake systems.

Disc brakes are the fastest growing brake segment globally, in terms of volume and value. This growth can be attributed to better efficiency and performance offered by disc brakes, when compared with drum brakes. Disc brakes are known to dissipate heat more effectively than drum brakes, reduce brake fade, offer better performance on descending slopes and, most importantly, have better stopping power than drum brakes. However, drum brakes still dominate the commercial vehicle segment. Brake system manufacturers are working on making cost-effective disc brakes, which will increase their adoption. In the U.S., the Federal Motor Carrier Safety Administration (FMCSA) has specific regulations that score vehicles on Compliance, Safety, Accountability (CSA). As per the CSA program, vehicles found with non-adjusted brakes are scored less during inspection. Disc brakes offer an advantage of internal self-adjustment, which meet the CSA regulations. Additionally, disc brakes are easier to integrate with active safety technologies, which will drive their demand in the coming years.

Traction Control System (TCS) is the fastest growing braking technology used in vehicles. TCS is an electronic braking system that complements the anti-lock braking system (ABS). TCS uses the same infrastructure as ABS, making it easier for installation in vehicles. However, the market for TCS is still nascent because the technology has been restricted to premium cars and motorcycles used for racing and touring. The mandatory installation of ABS in vehicles is estimated to drive the demand for TCS in the coming years.